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This album was released on EMI/Capitol records through a deal with Warner Bros. Records. The band had left EMI for Warner in 1991 where they would record their biggest album at the time, 1991's Blood Sugar Sex Magik. EMI, who owned the rights to the band's first four albums decided to cash in on the band's newfound mainstream success. The two labels however agreed that each label would allow the usage to one song recorded during the Peppers career on each label so each company could produce a greatest hits compilation. EMI chose the band's biggest hit single at the time, "Under the Bridge" for What Hits!? and Warner Bros. chose "Higher Ground", the band's most successful single for EMI for the band's 2003 compilation Greatest Hits.

The title of the compilation is a joke alluding to the relative lack of success achieved by the Red Hot Chili Peppers during their tenure with EMI, highlighting the irony that many of the tracks included on what is supposed to be a 'greatest hits' compilation were generally singles that peaked notably low in the charts, arguably too low to be considered 'hits' (and even in some cases, such as "The Brothers Cup," "Backwoods," and "Johnny Kick a Hole in the Sky", were never released as singles at all with the latter song never even being performed live). Most of the material released on this album were songs taken from Freaky Styley (1985) and Mother's Milk (1989).

"Behind the Sun" was released as a single to accompany the release of this compilation, originally appearing on the band's 1987 album The Uplift Mofo Party Plan. Ironically in 1987 the band pleaded with the label to release the song as a single however EMI deemed the song not worthy enough however thanks to the band's mainstream success the label now felt it was time to cash in and release the more melodic sounding song. Although a music video was also made, the Red Hot Chili Peppers had no involvement in its making since it was produced by EMI. The video reuses segments of the band performing taken from their earlier video for "Higher Ground".